Global Offshore Environment In Belize

Belize continues to be one of Central America’s premier tax havens and destinations for offshore company formations opportunities. The country offers many tax advantages to both businesses and individuals looking to form an offshore company for either personal or commercial use.

Belize, a former British colony has a parliamentary democracy, similar to Canada, with a long history of tolerance as well as political and financial stability.  The country’s legal system is founded upon English Common Law with English as the official language. The Belize government, the International Financial Services Commission and the country’s financial institutions both continue to offer attractive financial packages to foreign investors looking to invest offshore or form a company or open a Belize offshore bank account.

Those seeking offshore banking and corporate infrastructure in a stable, affordable jurisdiction close to the United States will find Belize a perfect location that will satisfy all their financial and offshore needs. It offers visitors and residents a great climate, a vibrant and inclusive culture as well as a high level of political and economic freedom.

*UPDATE

There have been a number of recent changes to the Belize Corporate Law, no longer is it a tax-free jurisdiction, and due to the numerous changes to the law some of which can be found here. The jurisdiction and the offshore industry no longer holds the same allure as it did before, and only is attractive now for certain situations and individuals.

Table of Contents:

• Global Offshore Environment in Belize
• Benefits of Belize as a Tax Haven
• In-Depth Information about Belize as a Tax Haven
• Location
• Political Structure
• Economy and Infrastructure
• Language, Population and Culture
• Exchange Control
• Type of Law
• Principal Corporate Legislation
• Taxation

Benefits Of Belize As A Tax Haven

• Speedy and simple incorporation for fast reaction to financial planning needs (one-hour incorporation)
• Total exemption from all forms of local taxation including Stamp Duty
• IBC’s headquartered in Belize pay no taxes on profits earned outside the country
• Only one Shareholder is required – there is no public record of the Shareholder
• IBCs require only one Director who could be a corporation
• No residency or citizenship requirements for Directors of offshore companies
• Meetings of Shareholders and/or Directors may be held in any country, at any time and they may attend meetings by proxy
• No requirement to file accounts or to have accounts audited; public filing limited to certificate of incorporation, memorandum and articles of association, registered office and name and address of registered agent; companies in Belize are not required to have publicly accessible records.
• Capital may be expressed in any currency
• No minimum paid-up capital requirements
• Offshore business activities are exempted from exchange control in Belize.
• IBCs may be used for financial management, investment holding, ship or property ownership, share ownership of other companies, leasing of assets, copyrighting and/or licensing, as well as general commercial trading
• Ease of transfer of companies to and from Belize
• Modern, flexible legislation for mutual funds, insurance and trusts
• No double taxation treaties with any other country
• Companies are not required to file an annual tax return
• The US dollar is widely accepted for business purposes in Belize; there is a flat rate of exchange for the US and Belize dollars: US$1 for $2 Belize
• English is the official language in Belize, though it is possible to incorporate an International Business Corporation (IBC) in any language in the nation; many Chinese language IBCs are incorporated in Belize
• Incorporated companies in Belize have the same legal powers as an individual
• The legal system in Belize is based on English Common Law and simple for anglo-based countries to understand
• Companies in Belize can maintain bank accounts in other popular tax havens
• Traditionally very welcoming for expatriates
• Under Belize’s retired persons’ incentive program, foreigners who are over 45 years old and have a monthly income of at least US$2,000 are exempt from Belize’s income tax.
• Real estate is still very affordable in Belize; a person can buy a lot in a planned community in Belize’s Cayo District for just US$25,000; a home with all the modern amenities can be built in such a community for just US$100,000
• Belize has one of the world’s most pleasant climates; the average low temperature in the nation is 75° Fahrenheit in January and the average high temperature is 80° Fahrenheit in July
• Belize is a popular destination for yachting and water sports; in addition to 450 offshore islands and the Belize Barrier Reef, the country is a popular destination for scuba diving and deep-sea fishing